PIPE Financing: How PIPE Deals Work, and How They Shape Corporate Finance
Boston Business Journal connected with John Rudy to discuss private investment in public equity (PIPE) financings for an article that outlines their purpose, what entering a PIPE could signify for companies, and how they might be particularly useful for SPAC mergers.
“The PIPE is typically done concurrently with the signing up of the business combination agreement… to raise money for the post de-SPAC business, and ensure that the de-SPAC business has the cash that it needs. It’s basically filling up the hole left by the expected redemptions,” John says. “PIPEs invite creativity. It’s the area in which you can be most creative in terms of trying to come up with a vehicle financing that works for the company and for investors.”
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